LOS ANGELES, May 12, 2020 /PRNewswire/ -- Covid-19 has sparked hundreds of questions about national finances and how investors should budget for uncertain market changes. Los Angeles financial advisory firm HCR Wealth Advisors recently participated in a roundtable discussion with the Los Angeles Business Journal to answer questions on a variety of topics, including investment approaches during the global pandemic, as well as what can be expected of the Fed's interest rates moving forward.
The HCR team was joined by John P. Schlatter CFP, Founder & CEO Salient Wealth Planning Group, and Vivian L. Thoreen, Executive Partner at Holland & Knight Law Firm Los Angeles. Together, they outlined how Covid-19 will affect investments—including how it may provide a prime opportunity for investors to restructure their portfolios with attention to defensive stocks.
"Environments like these present a good lesson to all investors - reminding them of the importance of managing risk and not selling into a panic, which can cause irreparable damage to long-term returns," the HCR Team explained.
"Instead, investors should reduce the equity percentage of their total portfolio to the lower end of their personal risk spectrum. You should do this during pockets of strength in the market to raise cash and potentially increase defensive investments."
HCR Wealth also spoke about potential difficulties in securing income during the Fed's interest rate halt. "Even if the economy bounces back later this year, we believe the Fed will remain on hold to ensure the next expansion is well anchored before they begin raising rates," they said. "In terms of how it affects high-net-worth investors, low-interest rates make it harder to generate income."
Other highlights in the conversation detailed the likelihood that the Trump Administration will attempt to revitalize the economy before November's election and explained why investors should be paying mind to the Gift Tax Inclusion annually.
A full transcript of the roundtable can be found here.
About HCR: HCR Wealth Advisors was established in 1988 in Los Angeles as an independent wealth management firm that helps clients successfully navigate different financial climates. HCR uses The Clarity Formula™ to create individualized financial roadmaps for clients that are proven to help clients reach their financial freedom—even through unforeseeable obstacles.
The Clarity Formula™ framework is entirely customizable to each client and includes a comprehensive walkthrough of financial planning, estate management, investment and risk management, tax strategies, cash management, and philanthropy. The firm was founded by CEO Greg Heller, CFP. He has led the company from its two-person beginnings into one that has grown to manage about $1 billion in client assets.
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